HDI Global posts growth in 2023 results

HDI Global posts growth in 2023 results | Insurance Business Asia

Insurance News

HDI Global posts growth in 2023 results

CEO highlights “a strong year” in the face of inflationary pressures

Insurance News

By
Kenneth Araullo

HDI Global SE has disclosed its financial performance for the year 2023, showcasing growth across its segments.

The insurer witnessed an improvement in its combined ratio by 1.5 percentage points from the previous year, currently positioned at 91.5%. Insurance revenues saw a 10% increase, reaching €9.1 billion. There was also a 4% rise in operating profits, totalling €446 million, and a 13% increment in net income, which amounted to €351 million.

The past year also marks the inaugural year HDI Global has reported its annual financial metrics in line with the IFRS 17/9 international financial reporting standards.

Dr Edgar Puls, CEO of HDI Global SE, commented on the year’s outcomes, noting that “2023 has been a strong year” for the company.

The insurer’s financial uplift was notably driven by its property and liability segments, contributing to a robust insurance service result of €770 million, up from €574 million the previous year. This performance was buoyed by higher interest rates, reduced frequency of losses, and minimal large losses, which were reported within the budget at €334 million. As a result, HDI Global’s combined ratio improved significantly.

“While the effects of inflation played their part in the first half of the year, we were able to increase our insurance service result and minimise the impact of large losses on our balance sheet thanks to prudent and disciplined underwriting. With these positive results and the worldwide performance culture in our group, we can confidently act as our clients’ partner in transformation. I am thankful for their continuous trust in us,” Puls said.

The net insurance financial and investment outcome, before currency effects, was reported at €11 million, attributed to strategic investment rebalancing towards higher-yield opportunities, despite accepting losses on disposals. The operational profit and the company’s contribution to the Talanx Group’s net income also saw a rise.

Puls further elaborated on the company’s adaptability in the face of industry evolution, such as transitioning towards a carbon-neutral world, advancing digitalisation, and the emergence of new risks like autonomous vehicles and offshore wind farms.

“We enable the global industry in light of emerging new risks by acting as their close partner, offering tailor-made insurance solutions and additional services. We are also a leading player in International Programmes and Alternative Risk Transfers such as captives. The continued growth in both areas in 2023 is a testament to our expertise and our strong global network,” he said.

The CEO also emphasised the significance of resilience, reliability, and trust in maintaining long-term client relationships.

“In 2023 we paid out more than €6 billion in claims, proving that we are there for our clients when it really matters. Our positive results encourage this approach of continuous client centricity and the aspiration of constant progress in our solutions. To offer leading expertise is a must, and with the talent in our group, I am confident that we will continue to satisfy our clients’ needs,” Puls said.

Meanwhile, HDI Global parent firm Talanx also recently reported its 2023 financials, lifting its profit targets as it revealed growth across its business segments.

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